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Follow on Google News | July 2009 Update-- Highest Certificate of Deposit RatesFor July 2009, where are the current highest certificate rates? Have interest rates been moving up, down, or sideways? Investment rates throughout the spectrum of opportunities continue to be volatile and downright nerve wracking.
By: Chris Duncan - Jumbo CD Investments, Inc. Despite Fed Funds remaining around 0.25%, the bond movement did put upwards pressure on CD rates. For 1-year certificate of deposit rates, we saw an average increase of about 0.15%. On 5-year CDs, the increase was even higher, around 0.25%, and we saw a high of 4.00%. One bank even offered a 10-year at 5.10% (Yes, it would be a good idea to join our list). The economic news that has been released over the last few days has not been hopeful. As a result, most feel the low Fed Funds rates will linger for some time and we've seen yields falling again. Especially for terms of 2-years or less. But, even some of the longer-rates have decreased. One credit financial institution had a 4.0%, 5-year CD for about 3-months. For July, the interest rate was lowered to 3.50%. At some point, the Fed will have to reverse course and begin |increasing rates. I'm guessing that will be in six to nine months. However, rates will probably increase slowly to avoid stalling the recovery. Some of the Mega-banks that received TARP funds have been making requests to pay them back. Would you believe, they don't want the Government looking over their shoulders? Although, I'm a fan of low regulations, I think they need some serious watching over. It really doesn't seem like the banks have learned anything, except that the Big O will rescue them. Also in June, commodities began to increase, especially oil. As a result, gas prices rose to around $2.50 per gallon. In California, they have moved up to 2.95%. Leave it to California. Earlier in the week, California got permission to put even more strict emission standards on the books. That is not going to help California's economic recovery. And of course, CAs big budget fight is spilling over to issuing IOUs. Visit our site, http://www.jumbocdinvestments.com for updated rates or our blog, http://jumbocdinvestments.com/ # # # About Jumbo CD investments: End
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